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HB 406: "An Act relating to audits of private, nonprofit corporations that receive grants from the state."

00 HOUSE BILL NO. 406 01 "An Act relating to audits of private, nonprofit corporations that receive grants from 02 the state." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.08.101 is amended to read: 05 Sec. 14.08.101. Powers. A regional school board may 06 (1) sue and be sued; 07 (2) contract with the department, the Bureau of Indian Affairs, or any 08 other school district, agency, or regional board for the provision of services, facilities, 09 supplies, or utilities; 10 (3) determine its own fiscal procedures, including but not limited to 11 policies and procedures for the purchase of supplies and equipment; the regional 12 school boards are exempt from [AS 37.05 (FISCAL PROCEDURES ACT) AND] 13 AS 36.30 (State Procurement Code) and, except for AS 37.05.322, from AS 37.05 14 (Fiscal Procedures Act);

01 (4) appoint, compensate, and otherwise control all school employees in 02 accordance with this title; these employees are not subject to AS 39.25 (State 03 Personnel Act); 04 (5) adopt regulations governing organization, policies, and procedures 05 for the operation of the schools; 06 (6) establish, maintain, operate, discontinue, and combine schools 07 subject to the approval of the commissioner; 08 (7) recommend to the department projects for construction, 09 rehabilitation, and improvement of schools and education-related facilities as specified 10 in AS 14.11.011(b), and plan, design, and construct the project when the responsibility 11 for it is assumed under AS 14.11.020; 12 (8) by resolution adopted by a majority of all the members of the board 13 and provided to the commissioner of the department, assume ownership of all land and 14 buildings used in relation to the schools in the regional educational attendance area; 15 (9) provide housing for rental to teachers, by leasing existing housing 16 from a local agency or individual, or by entering into contractual arrangements with a 17 local agency or individual to lease housing that will be constructed by the local agency 18 or individual for that purpose; 19 (10) exercise those other functions that may be necessary for the 20 proper performance of its responsibilities; 21 (11) employ a chief school administrator. 22 * Sec. 2. AS 37.05 is amended by adding a new section to read: 23 Sec. 37.05.322. Audits of nonprofit corporations receiving grants. (a) A 24 private, nonprofit corporation that receives a grant from a state agency, including a 25 public corporation, under AS 37.05.316, 37.05.317, or other law shall submit an audit 26 of the nonprofit corporation's entire operations to the state agency covering each fiscal 27 year during which grant money is made available to the nonprofit corporation. 28 (b) A private, nonprofit corporation that receives a grant from a state agency, 29 including a public corporation, under AS 37.05.316, 37.05.317, or other law shall, at 30 the request of the legislative audit division, make the nonprofit corporation's records 31 available to the division so that the division may audit the uses made of the grant

01 money. 02 (c) The requirements of (a) and (b) of this section shall be included in each 03 grant agreement under which a grant is made available by a state agency, including a 04 public corporation, to a private, nonprofit corporation. 05 * Sec. 3. AS 42.40.920(b) is amended to read: 06 (b) Unless specifically provided otherwise in this chapter, the following laws 07 do not apply to the operations of the corporation: 08 (1) AS 19; 09 (2) AS 30.15; 10 (3) AS 35; 11 (4) AS 36.30, except as specifically provided in that chapter; 12 (5) AS 37.05, except for AS 37.05.322 and except as specifically 13 provided in AS 37.05.210; 14 (6) AS 37.07; 15 (7) AS 37.10.010 - 37.10.060; 16 (8) AS 37.10.085; 17 (9) AS 37.20; 18 (10) AS 37.25; 19 (11) AS 38; 20 (12) AS 44.62.010 - 44.62.320.